Today, an important economic event is about to take place—the US Non-Farm Payrolls report will be released tonight. I just realized that many people in the crypto community don’t really understand why non-farm data has such a big impact on the cryptocurrency market.

Non-farm data basically measures the number of new jobs created in the United States in the previous month, excluding the agricultural sector. This is one of the key indicators the Fed uses to decide monetary policy, especially with regard to interest rates. If this number is higher than expected, it may indicate that the United States economy is recovering strongly, causing the Fed to keep interest rates high. In that case, risk assets like cryptocurrencies will face strong selling pressure.

On the other hand, if non-farm data comes in lower than expected, the Fed may loosen monetary policy, creating conditions for capital to flow into assets like Bitcoin or Ethereum. That’s when the market could rally.

In fact, Bitcoin is currently at 67.27K (+0.60% over the past 24 hours), and it’s quite sensitive to macroeconomic data like this. I’ve seen many times that Bitcoin gets dumped hard after positive non-farm data is released. Altcoins are even more volatile, especially those with smaller market caps, so you need to be careful when trading during this period.

The most important thing is market sentiment. Non-farm data can deeply affect the decisions of global investors, especially when concerns about inflation and an economic recession are still present.

My advice: Don’t trade right away as soon as the news is released. The market often fluctuates very strongly and is difficult to predict in the first few minutes. It’s better to prepare scenarios for both cases—good or bad non-farm data. Make sure your portfolio has a reasonable allocation; you shouldn’t bet too much on a single asset.

In summary, today’s non-farm report will be an important milestone. Keep a close watch and use an appropriate strategy to deal with the volatility coming up. Remember, the cryptocurrency market is always highly volatile, so you should only invest the amount of money you can afford to lose.